Exponential Moving Average (EMA)

EMA is a type of moving average that reacts faster to recent price changes. It gives more importance to the latest prices, which makes it useful for spotting short-term trends.

Traders often use two EMAs together to get signals. A common method is to watch for a crossover where a shorter EMA moves above a longer one. That can suggest a change in momentum.

Suppose HDFC’s 9-day EMA crosses above its 21-day EMA and the price starts moving higher. This could be taken as an early sign of bullish momentum building.

Parameter	Description	Default Value
Source	Input price data series	-
Window	Number of periods for the indicator	14